Former Chelsea Owner Roman Abramovich Loses Legal Challenge to EU Sanctions

Former Chelsea owner Roman Abramovich has suffered a legal setback in his attempt to overturn sanctions imposed on him by the European Union following Russia’s invasion of Ukraine. The EU General Court has upheld the restrictions, which were implemented in March 2022. Abramovich has the option to appeal the ruling.

EU Sanctions Upheld

The EU imposed sanctions on Abramovich in March 2022, citing his privileged access to Russian President Vladimir Putin and his close relationship with him. These connections were seen as instrumental in maintaining Abramovich’s wealth. The UK government also sanctioned Abramovich in the same month, labeling him a “pro-Kremlin oligarch.”

Court Rejects Abramovich’s Claims

Abramovich’s legal challenge to rescind the sanctions was dismissed by the court in Luxembourg. His claims of a disproportionate infringement on his freedom of movement within the EU due to his Portuguese citizenship and his request for compensation were also unsuccessful. The court highlighted Abramovich’s role in the Russian company Evraz, which provided significant revenue to the Russian government.

EU’s Argument

The EU argued that Abramovich’s economic activities, particularly through Evraz, contributed to the Russian government’s revenue stream and indirectly supported the invasion of Ukraine. Evraz, one of Russia’s largest taxpayers, was accused of aiding the annexation of Crimea and destabilizing Ukraine.

Abramovich’s Response

A statement issued on behalf of Abramovich expressed disappointment with the court’s ruling but welcomed the rejection of certain arguments presented by the EU Council. The statement emphasized that Abramovich does not have the ability to influence any government’s decision-making, including Russia, and has not benefited from the war.

Impact on Chelsea

In March 2022, the Premier League disqualified Abramovich as director of Chelsea. The club was subsequently sold to a new ownership group led by Todd Boehly and Clearlake Capital two months later. The sanctions on Abramovich also led to the resignation of the 10-strong board of directors of Evraz, and the Financial Conduct Authority suspended the trading of their shares on the London Stock Exchange.

(Cem Ozdel/Anadolu Agency via Getty Images)